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Our Market Bureau
Mumbai, July 28: After falling for seven consecutive trading sessions, the 30-share BSE Sensitive Index found the much needed support at 3,089 levels to close above the crucial benchmark of 3,100 points on Tuesday.
Institutional support coupled with indicators like rising short positions saw the Sensex close at 3,166.84 points, up 81.67 points from the previous close. The short positions on the BSE witnessed a phenomenal rise of over Rs 50 crore to a high of Rs 287 crore on July 27. According to market participants, hectic shortcovering at the counters of Asian Hotels, Bajaj Auto and Telco aided the Sensex's recovery.
While the market was agog with rumours that FIIs like Warburg Dillon Read and CSFB had bought huge chunks of Telco, figures provided by NSE on FII transactions show that they have been net sellers to the tune of Rs 10 crore.
"Technically, the market was in the oversold zone and the daily mechanical indicators of Sensex being at a single digit the market had been falling for seven Mumbai, July 28: After falling for seven consecutive trading sessions, the 30-share BSE Sensitive Index found the much needed support at 3,089 levels to close above the crucial benchmark of 3,100 points on Tuesday.
Institutional support coupled with indicators like rising short positions saw the Sensex close at 3,166.84 points, up 81.67 points from the previous close. The short positions on the BSE witnessed a phenomenal rise of over Rs 50 crore to a high of Rs 287 crore on July 27. According to market participants, hectic shortcovering at the counters of Asian Hotels, Bajaj Auto and Telco aided the Sensex's recovery.
While the market was agog with rumours that FIIs like Warburg Dillon Read and CSFB had bought huge chunks of Telco, figures provided by NSE on FII transactions show that they have been net sellers to the tune of Rs 10 crore.
"Technically, the market was in the oversold zone and the daily mechanical indicators of Sensex being at a single digit the market had been falling for sevenconsecutive sessions on account of which a sizeable short positions were built up," explained Maulik Sharedalal, director of Kaji & Maulik Securities, in the light of the sudden turnaround witnessed by the stock market indices.
The presence of oversold positions of over 5.4 lakh shares on the BSE at the Telco counter, according to market participants, led to a major rally on the bourse.
On the BSE, the stock hit the upper end of the price band at Rs 126.60, with a huge volume of over 19.72 lakh shares traded at the counter.
Interestingly, about 2.62 lakh shares were outstanding buy orders at the circuit price which could not be executed on account of the price filter. The stock touched a new low of Rs 116 before bouncing back to touch the upper end of the circuit.
Similarly, on the NSE the stock was locked at the upper limit of Rs 127.10 with a phenomenal volume of 25.39 lakh shares. At the circuit price, an outstanding buy order of 1.55 lakh shares was recorded.
Infotech stocks continued to hogthe limelight on the local bourses. While Satyam Computers registered the highest turnover of Rs 282 crore on the BSE, the stock reported a turnover of Rs 350 crore on the NSE on the last day of the trading settlement. Most of the frontline stocks like Satyam Computers, NIIT, Digital Equipments and Pentafour Software were locked at the upper limit of the price band on both the exchanges.
Domestic institutions and banks were reported to have bought small chunks of MNC and infotech stocks. While BSE and NSE recorded a substantial jump in their turnover on account of the rising volumes at the infotech counters, the advancers versus decliners ratio suddenly seems to have turned in favour of advancers. On the BSE, the ratio was pegged at 580:394 on the NSE it was 529:429.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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